Are you a member of a smallish Body Corporate (‘’BC’’) who does not want to pay exorbitant fees to an auditor annually to audit the financial statements?
If the answer is NO, we have the solution for you if you want to save thousands of Rands annually by not appointing an auditor to audit your Body Corporate’s financial statements!
LAW ON SECTIONAL TITLES IN SOUTH AFRICA
The Prescribed Management Rule (‘’PMR’’), which governs the appointment of auditors, states explicitly that an auditor must be appointed!
Let’s have a look at the PMR annexed as Annexure 1 to the Sectional Titles Schemes Management Act No. 8 of 2011 (‘’STSMA’’) dealing with this provision, its PMR 26(1)(c) read together with PMR 26(5), and we quote:
If we look at the above, it is clear that BC’s financial statements MUST be audited by an auditor if there is more than one owner, correct?
Well, it is correct UNLESS you amend the PMRs, substitute them with your very own Management Rules and, of course, use JW Consultants!
JW Consultants assisted one of our clients in amending the PMRs as indicated above, and not only was it approved by the Community Scheme Ombud Service (CSOS), but it was also done in record time!